Washington House Democrats

Moeller disappointed as sales-tax holiday falls victim to legislative deadline

Lawmaker says he'll keep working to get 'people's tax break' enacted into law

March 5, 2007

OLYMPIA – Although a legislative deadline today (March 5) has stymied his proposed sales-tax holiday, state Rep. Jim Moeller vowed to keep working on "this people's tax break for average Washington families and average Washington businesses."

The House Finance Committee chair refused to allow Moeller's measure (House Bill 1012) to come for a vote in the committee. With less than a couple months to go in this year's session, that means the bill is stalled – for this year, anyway.

Moeller, D-Vancouver, said that "sometimes the legislative process doesn't work as fast as we'd like it to work. This is one of those times. Sure, of course I'd like to get this legislation on the books in time for consumers and stores later this year. But better next year than never."

The measure would enact a sales-and-use-tax holiday for the second weekend every August – "a genuine and reliable tax break for average middle-class people. These are the thousands of Washington families who do the best they can each August to buy school-supplies and still make ends meet before the start of every school year."

The third-term legislator said the bill is "an especially appropriate idea for our border counties. Businesses in my own Clark County, for example, lose millions of dollars a year in revenue to their Oregon competitors.

"At least a dozen other states provide their citizens and businesses a break from the sales tax for a couple days a year – usually in August to help back-to-school shoppers."

Moeller met with small businesses and other retailers, as well as city and county officials to develop the legislation.

"It's very disappointing that the state of Washington maintains 'tax incentives' for huge businesses," he said, "and yet it will be at least another year before we offer this simple little break for regular people.

"Our state keeps around 500 tax breaks and exemptions on the books, ostensibly to encourage economic development and the jobs that go with it," he explained. "We have tax breaks and credits for biotechnology and medical-device manufacturing, third-party help-desk services in rural counties, preproduction-development expenditures, commercial-airline repair stations – you name it.

"It’s estimated that these kinds of policies punch a state-budget hole approximately $5 billion wide every year. Yes, these breaks and exemptions help businesses employ a lot of men and women. And no, I'm not saying we should get rid of all these breaks tomorrow – or maybe ever.

"All I'm saying is let's be fair about our tax policies. Let's make them do as much good in the living rooms of Washington families as they do in the board rooms of Washington businesses."

For broadcast-quality audio on this issue, or to arrange TV or radio interviews, contact Dan Frizzell, House Democratic Caucus broadcast coordinator, at frizzell.dan@leg.wa.gov or (360) 786-7208.

Contact Clint Robbins, House Democratic Caucus communications specialist, at robbins.clint@leg.wa.gov or (360) 786-7323.